The two options available are old oil wells and salt caverns, and whenever reserves are set up, old wells would hold most of the gas, they said.

“ONGC and GAIL are currently looking at the possibility. When talks go ahead, ISPRL (Indian Strategic Petroleum Reserves Ltd) is expected to collaborate in the process,” said one of the people mentioned above.

The gas reserves are likely to be set up in the western coast of the country, the person said, adding that a team from India visited Europe to understand the technical knowhow and its application in Indian conditions.

Mint earlier reported that India is setting up a strategic gas reserve on the lines of its strategic petroleum reserve (SPR). Queries sent to ONGC, GAIL and ISPRL were not immediately responded.

The government has been considering the plan to set up strategic gas reserves over the past few years. However, given the critical technical and infrastructure issues involved, the plans have so far not taken a concrete shape.

The process has gained momentum with prospects of higher demand going ahead and a steep fall in gas prices over the past one year. India is a net importer of natural gas and the expansion in the city gas distribution sector, fertilizer manufacturing among others, the consumption of gas is expected to grow.

During the current financial year (April-December), India’s import of liquefied natural gas (LNG) stood at 22.85 billion metric standard cubic meter per day, against 20.01 billion metric standard cubic meter per day during the same period of the last fiscal.  

The Centre has set a target of increasing the share of gas in the energy basket to 15% by 2030 from the current 6%.

India already has strategic petroleum reserves and ISPRL, a wholly-owned subsidiary of the Oil Industry Development Board (OIDB) under the ministry of petroleum & natural gas, manages 5.33 million metric tonnes (MMT) of strategic crude oil storages in three locations in Vishakhapatnam, Mangalore and Padur.

The Vishakhapatnam facility with 1.33 MMT capacity was commissioned in June 2015, while Mangalore (1.5 MMT) and Padur (2.5 MMT) were commissioned in October 2016, and December 2018.

Further, ISPRL is preparing to lease out one of the 0.75 million tonnes-capacity storage caverns it operates in Mangalore, said the second person mentioned above, adding that foreign players are interested.
With this, the whole of the Mangaluru strategic petroleum reserve, which includes two caverns of 0.75 million tonne capacity each, will be leased out. UAE’s Abu Dhabi National Oil Company (ADNOC) has been storing crude in one of the caverns since 2018 and has signed an agreement to use the Padur facility as well.

ISPRL would soon issue expressions of interest for leasing out the cavern, the person added. It is also constructing two other reserves under Chandikhol, Odisha (4MMT) and is expanding the Padur facility by 2.5 MMT.

A parliamentary standing committee in December last year had suggested setting up of more strategic petroleum reserves. “The ministry may provide funds for creation of storage caverns to oil PSUs through ISPRL, while the oil PSUs can store and maintain the caverns for their usage,” the committee said in its report.

https://eportal.incometax.gov.in/iec/foservices/#/e-pay-tax-prelogin/e-pay-tax/net-banking-summary

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The acquisition was completed on 1st February 2024, subsequent to the receipt of approval from Petroleum and Natural Gas Regulatory Board (PNGRB) on 13th December 2023. Prior to the transfer, Ashoka Buildcon Ltd. (ABL) and an investment fund managed by Morgan Stanley India Infrastructure (MSII) held equity in UEPL.

Mr. Ashu Shinghal, Managing Director, Mahanagar Gas Limited said, “Unison Enviro Private Limited is our first acquisition. It is a momentous occasion for MGL, marking a significant milestone in our corporate history. The acquisition of UEPL aligns with our commitment towards realising our long-term growth plans. It will not only help expand our core business of City Gas Distribution but will also help UEPL in ensuring a higher growth trajectory by leveraging deep domain knowledge, optimisation of cost structure through possible integration and synergies.”

“We extend a warm welcome to the employees, partners, vendors, and customers of UEPL into the MGL family”, he added.

Mr. Ashish Kataria, Director of Ashoka Buildcon Limited, said, “The transaction showcases ABL’s ability to identify, implement and successfully divest in new and promising sectors. We have reiterated our commitment to give our investors a good return and help the country transition to cleaner energy. We thank our investor Morgan Stanley India Infrastructure for their contribution in making this a successful venture. With Mahanagar Gas Limited acquiring hundred per cent stake in UEPL, we are delighted to have delivered value to all its stakeholders.”

Mr. Shyamsundar Gurumoorthy, Managing Director of Morgan Stanley India Infrastructure, added, “At the time of our investment, UEPL was a pre-revenue company and its scale-up to a profitable business serving 25,000+ customers has been a rewarding journey. We are proud to have partnered with Ashoka Buildcon Limited to build UEPL.”

The Share Purchase Agreement between MGL, UEPL, and its shareholders, ABL and MSII, was signed on 3rd March 2023, resulting in the acquisition at a cash consideration of Rs 562 crore. HDFC Bank served as the exclusive Transaction Advisor to MGL, while Kotak Mahindra Capital Company was the exclusive financial advisor to Ashoka Buildcon Limited and the investment fund managed by Morgan Stanley India Infrastructure.

In addition to this landmark acquisition, MGL has further diversified its energy portfolio with the establishment of Mahanagar LNG Private Limited. MGL is also working with Brihanmumbai Municipal Corporation (BMC) to set up one of the largest Biogas plants based on Municipal Solid Waste in Mumbai. Hydrogen, EV, Renewables are adjacent areas for MGL to expand its energy portfolio for which the company is actively engaged in exploring opportunities to fuel its growth.

https://www.business-standard.com/markets/capital-market-news/mahanagar-gas-rises-after-acquiring-100-stake-in-unison-enviro-for-rs-562-crore-124020200400_1.html

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The objective of the scheme will be to support the transition towards energy security.

”Phased mandatory blending of CBG in Compressed Natural Gas (CNG) for transport and Piped Natural Gas (PNG) for domestic purposes will be mandated,” Sitharaman said in her interim Budget speech in the Lok Sabha.

She further said financial assistance will be provided for procurement of biomass aggregation machinery to support collection.

She told the House that for promoting green growth, a new scheme of bio-manufacturing and bio-foundry will be launched.

This will provide environment-friendly alternatives, such as biodegradable polymers, bio-plastics, bio-pharmaceuticals, and bio-agri-inputs, she said.

This scheme will also help transform today’s consumptive manufacturing paradigm to the one based on regenerative principles, she said. India Biogas Association Chairman Gaurav Kedia told PTI, ”Finance Minister Nirmala Sitharaman today (Thursday) presented financial assistance for machinery for the procurement of biomass schemes during Union Budget 2024, which will support the use of biomass to covert into CBG as part of the government’s commitment to a greener future.” The focus on promoting innovative research toward a greener future will help create a cleaner, greener, and more prosperous future to ensure Viksit Bharat by 2047, he said.

The government’s commitment to Viksit Bharat will also take shape with the Jai Anusandhan tagline.

https://www.devdiscourse.com/article/headlines/2795305-fm-announces-financial-aid-for-converting-biomass-into-compressed-biogas-phased-mandatory-blending

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s of the LNG landscape in Africa, focusing on various factors such as supply and demand dynamics, pricing complexities, infrastructure costs, and the impact of volatile markets.

The presentation also highlighted contrasting perspectives on LNG pricing and long-term trends. Africa boasts significant growth potential in terms of gas demand. However, certain challenges, such underpriced and subsidised gas, as well as cost recovery issues for electric utilities, pose obstacles in the region.

On the supply side, Africa possesses robust natural gas reserves and a range of forthcoming LNG projects. Mr Grand also drew attention to potential pricing disputes and the upward trajectory of long-term LNG prices, which have implications for infrastructure and overall market efficiency.

According to Mr Grand, Africa is expected to experience the highest gas demand growth rate globally, although there remains considerable uncertainty surrounding such forecasts. There is a basket of forecasts that range from the conservative to the optimistic, including one that sees Africa lifted out of poverty.

“What are the challenges for LNG to capture that demand? I think one of them is the question of prices,” said Mr Grand.

The key challenge for LNG demand in Africa is that there is a marked contrast in how gas prices are determined globally compared to the African context. A significant portion of Africa’s gas is regulated at prices below cost, resulting in subsidies that complicate the expansion of gas demand.

In Africa, the demand for gas is primarily driven by power generation. However, this presents challenges as electric utilities face difficulties in recovering costs, often leading to subsidies and limited capacity to pay for gas.

“We are aware we that 60% of gas [globally], is based on market index,” said Mr Grand, “This is only 13% in Africa.”

Despite the challenges, African gas supply is promising, with potential growth in both LNG export and import capacity. Mr Grand also shed light on commercial trends, acknowledging the volatility of the environment and its subsequent impact on infrastructure costs.

“[In Africa] about 80% of urban population is electrified,” he said, “but less than 30% of the rural population.” This will place a strain on infrastructure growth and the in-country reach of LNG.

Subsequent energy generation was also touched upon by Mr Rone in his presentation.

Mr Grand also discussed security, emphasising the high volatility and increased charter rates that reflect the value of flexible infrastructure and indicated the potential economic implications for African LNG projects due to the anticipated rise in the cost of these flexible assets.

In his summary, Mr Grand noted that there are various challenges regarding LNG demand in Africa, particularly the issue of gas pricing, with a substantial portion of gas being regulated at prices below cost.

Addressing these challenges and capitalising on growth opportunities will be instrumental in shaping Africa’s LNG landscape, noted Mr Grand, and these opportunities are being met by companies like UTM.

UTM is a Nigerian company developing the first floating liquefied natural gas (LNG) project in Nigeria, in partnership with the Nigeria National Oil Company and PCL Limited. The project has gained support from the Nigerian government and policy makers, which are promoting natural gas as an environmentally friendly energy source and a catalyst for industrialisation.

During his presentation, Mr Rone announced the company’s development of Nigeria’s inaugural floating LNG project in collaboration with the National Oil Company. This aligns with the Nigerian government’s focus on gas development to meet infrastructure needs and protect the environment.

The government is providing support to the project through favourable regulatory frameworks, policies, and incentives such as tax breaks, grants, subsidies, and market access. These measures aim to attract private investment and reduce overall project costs.

UTM is working on developing a capacity of 1.79M tonnes per annum (mtpa) for the project, in a water depth of 64 m, some 60 km from the shore. The proposed floating LNG is expected to produce 0.3M tonnes of LPG and 1.3M tonnes of condensate to meet domestic demand.

The project also envisions training Nigerians for plant management and operation. Last year, UTM secured the front-end engineering and design contract, in collaboration with Kellogg Brown and Root, Japan Gas Corp and Technip Energies.

https://www.rivieramm.com/news-content-hub/news-content-hub/lng-demand-economics-and-flng-projects-in-africa-79361

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After talks with his Qatari counterpart and the ministers of energy and finance, Péter Szijjártó said that they had discussed several important issues of bilateral cooperation, such as the security of energy supply, which remains critical in Europe. He emphasized the need to

attract new and additional energy sources without replacing existing suppliers.

The politician underlined that Qatar will significantly increase its LNG exports from 2026, and that inter-company negotiations on the supply of LNG to Hungary have begun, following the previous political agreement.

The Hungarian minister also noted that both parties are most interested in a long-term contract.

With regard to possible transit routes, he pointed out that there are several options, either through LNG terminals in Turkey, Greece, or Poland.

However, the southeast European route would require the swift implementation of ongoing capacity expansion projects, he added.

Minister Szijjártó then welcomed the continued development of bilateral economic relations and the breaking of the export record. “In Qatar, it is highly appreciated that Hungary was able to prove last year that it can run its economy without EU funds, and even keep its economy on a growth path, and we were able to set an investment and an export record,” he said. “Qataris see Hungary as a very reliable and attractive investment destination. They expect progress in the coming period, especially in infrastructure investment and financial cooperation,” he added.

The politician touched on the Middle East conflict, which he stressed was a matter of great concern for the whole world and that global action was needed to prevent escalation. Among the negative developments, he cited clashes between Israel and Lebanon’s Hezbollah, and attacks on merchant ships and U.S. military bases in the region.

“The past weeks of the Middle East conflict have produced a number of signs that have made the risk of escalation more serious than ever. We therefore believe that the most important task for the international community today is to prevent an escalation of the conflict in the Middle East,” he urged.

The minister also praised Doha’s role in the release of some of the hostages taken by Hamas, including three Hungarian citizens. He noted that one more Hungarian citizen might be in the terrorist organization’s captivity, and therefore asked his Qatari counterpart to help him return home as soon as possible.

He expressed the hope that the negotiations on further hostage exchanges would be successful sooner rather than later, but preferably sooner, as he had recently heard in Israel from some of the hostages and their families who had returned home about the terrible conditions.

https://hungarytoday.hu/long-term-political-agreement-signed-on-buying-qatari-lng/

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